As the cost of higher education continues to rise, pursuing financial aid has become a crucial aspect of the college application process for many students and their families. Merit aid, awarded based on a student’s achievements and abilities rather than financial need, can significantly alleviate the financial burden associated with attending college.
Both my children received merit-based aid because of their academic performance. The best path to this type of aid is to focus on academics. Start when your child enters high school by stressing the importance of a strong academic performance.
There isn’t any definitive answer to how much parents should contribute toward the cost of college. Some feel it’s the parent’s responsibility to pay for the entire cost. Others feel that the student should participate financially. And still, others believe the student is responsible for securing the loans, grants, and scholarships themselves and the parents should not invest. Of course, there are always those situations when the parents, no matter how much they would like to help, are unable financially to contribute.
No matter which group you fall into, there are some important facts you should know about financing your student’s college education.
For the next several days, I’m going to be sharing some Back to School tips for parents. These tips will be for current high school parents and those parents whose students are heading off to college.
Today’s tips are for parents of current college students, especially those who are heading to college for the first time.
Over 1.7 million scholarships are awarded annually; however, only 7% of college students will receive a scholarship. On average, first-time undergraduates who receive government grants and scholarships at a 4-year college receive about $14,890 annually. On average, a student who receives a scholarship or grant at a private 4-year college will receive $8,005 more than a student in a public 4-year college.
That sounds depressing and you might ask what are my odds of winning a scholarship, but all hope is not lost. Many students and their families have applied for scholarships and used them to pay for college. But, you need to know the facts.
If you’re a parent of a college-bound teen, you know the stress this adds to your family. If you are like most parents, the money you saved for college has not kept up with the increase in tuition. If your son or daughter isn’t one of the ones who snag a full ride, you are going to be looking for ways to cut those college costs.
Here are just a few tips that might help you pay less for college:
There is one thing you can be sure of in life: college tuition will rise every year. Prices rise and fall all around us, but tuition never seems to go down.
College tuition prices are a lot higher today compared with two decades ago. For instance, the average cost for tuition and fees among ranked public and private National Universities – schools that are often research-oriented and offer bachelor’s, master’s and doctoral degrees – has risen significantly since 2001, according to U.S. News data.
From the 2008 edition of the U.S. News Best Colleges rankings to the current 2022 edition, in-state tuition prices among public National Universities grew by almost 79%. Experts say state schools have typically had more room to increase tuition levels compared with their private counterparts, and finding a bargain price at the state level is becoming harder.
The economic downturn resulting from the coronavirus pandemic may also affect tuition costs in the years to come.
In just comparing the 2020-2021 school year to the current 2021-2022 academic year, tuition rates at both private and public National Universities have increased by at least 2%, according to U.S. News data.
Have you been thinking about some of the things that you can do when it comes to saving money while living off campus? There are plenty of options here that you can consider. In this article, we’re going to be looking at a few tips that will always help you to save money when it comes to your off campus home, so keep reading down below if you would like to find out more.
Grocery Shopping
The first thing that you are going to save money on is your grocery shopping. If you are only ever buying named brands, why? Have you tried the cheaper alternatives? A lot of them taste just as good as the larger brands as they are made from the same things. We’re of course, not saying that this is always true, but even if there is a little taste variation, there is a huge price variation. The last thing that we want is for you to be spending money unnecessarily when there are cheaper options that you do actually like. If you try the alternatives and decide you don’t like them, that’s completely fair enough, but you have got to try them first.
College is expensive. However, college students tend to take a casual attitude toward spending; hence they waste money in college. After tuition, room and board, students often find themselves tapped out and living on ramen noodles. But it doesn’t have to be that way. Students can save money by making wise choices and being cognizant of their spending.
Following are 10 ways to save money in college:
1. Create a budget
Any smart spender creates a monthly budget, especially college students who have limited discretionary funds. Even if you’re being subsidized by your parents and have a work-study job for expenses, it’s smart to watch your spending. Pizza and fast food delivery can add up.
2. Take on a job
If you qualify for financial aid, most colleges will offer work study. This allows you to work on campus during school and use that money for college expenses. Even if you don’t qualify, get a job while you’re in college. Not only will it subsidize your spending but studies show students who work in college get better grades.
Parents and students who understand and plan for the cost of college are wise consumers. Before applying to college, it makes sense to plan ahead and know your options before making a decision about college. The College Board and FinAid.org provide parents and students with several different college calculators to determine college costs, the expected family contribution for financial aid, and how much student loan payments will be upon repayment. Knowing these figures will help you better plan for the costs associated with college.
During these tough economic times, parents are committed to saving money on college costs. College tuition rises each year and there is little you can do about it; but there are other places that small savings will add up. Tuition will definitely be the huge chunk of your expenses. However, there are other expenses related to college where you can find some costs savings:
The expenses that cost the most
Computers—In today’s technological world a computer is no longer a luxury, it’s a necessity. When your teen goes off to college, they will need their own computer. Personally, I recommend a laptop instead of a desktop. Since it’s portable, they can take it with them to class, to the library, and to group meetings. To save some bucks, shop online for refurbished or even last year’s models. If you buy online, consider purchasing a service contract to go along with your computer purchase (Note: This will pay for itself—I learned from experience!)
Dorm furnishings—Most dorms come furnished with a bed, a desk and some sort of dresser. Beyond that, it’s up to you and your teen to decide what additional furniture and accessories they want. My recommendation is to buy used. You can find everything from small appliances (microwaves, coffeemakers, etc.) to furnishings (bookshelves, chairs and lighting) on Craigslist, Ebay or at local thrift stores. Be careful not to overload the room because they are traditionally small.
Room and board—Room and board can be a huge portion of your teen’s college expenses. One option is to live at home if the college is within driving distance. Another option to save might be to purchase a home near campus and rent it out to other students, allowing your teen to live in it. Not only will this save you on room and board, but it will also provide you with an investment and tax write off as a rental. However, make sure the home is zoned as rental property. And here’s one of the best savings of all: after freshman year, your teen can apply to become an RA (Resident Assistant) in one of the dorms, which will provide you with a huge break on room and board costs.
Meal plan savings—Most freshmen are required to purchase a student meal plan. But, there are usually options available. My recommendation is that unless your teen is an athlete with a large appetite, the full meal plan (3-meals a day) is costly and you will not get your money’s worth. Opt for the 1 or 2 meal a day plans. Most freshmen eat takeout with friends, microwave food in their rooms, skip meals periodically, and snack voraciously. Providing them with an in room fridge and microwave will save you some bucks in the long run.
Textbook savings
College
students can spend nearly $1000-1500 a year on new textbooks. The good news is
that you don’t have to spend that kind of money if you don’t want to. If you
can, prior to the beginning of each semester, find out what books your teen will
need (title, author and ISBN, or international standard book number). Then get
busy and here’s a word of extra advice: DON’T
WAIT UNTIL THE LAST MINUTE!
(Note: Look at my List of Website Links
in the Expert Links for all the links related to Textbooks)
Buy used–Never buy new textbooks if it’s possible (unless you are a fan of throwing money away). Used books are just as sufficient. Most students use their textbooks only while they are in class and end up selling them back to the bookstore at an incredibly reduced rate. (Many times the bookstore won’t buy them back because the professor changes texts or the textbook has been updated). You can easily find used books online at discounted prices and your teen will arrive on campus with their books in tow and won’t have to fight the last minute panic rush.
Try renting–There are numerous websites available that offer textbook rentals to students per semester. This is a fairly new concept, but seems to be taking off as more and more sites pop up offering this option.
Purchase Ebooks–Consider purchasing electronic textbooks. With the recent introduction of the new Kindle College version, your student can download their textbooks and carry all of them with them. Without purchasing a Kindle, they can download the ebook versions and store them on their laptop for easy access. These versions are typically 50% less than the printed text version. The only downside is that not all textbooks are offered in ebook format.
Share books–After freshman year, my daughter shared textbooks with her roommates. It was a huge cost savings. They were usually taking some of the same classes and would get together before classes began to discuss who would purchase which textbook. If your teen is a freshman, the likelihood of having the same courses as their roommate is extremely high. Sharing the book will save both of them money in the long run. There is also the option of using a library copy.
Look for free books–There are a few sites that offer free downloads of some electronic texts. Before you purchase, visit those sites to see if any of the books you need are listed and downloadable.
Evaluate the necessity—Do you really need the textbook? Wait a few days into class and get a feel for the professor. If he or she states that the tests will cover lecture notes, then consider not purchasing the book. Worst case scenario you can borrow one from a classmate if you truly need it or find a copy at the library.
The small things add up
It’s amazing how those little expenses can add up: gas, takeout, necessity items. But just as little expenses add up, small savings add up as well and you will be saving money on college costs.
Ditch the car–Many campuses don’t allow freshmen to have a car on campus. But if your teen opts to live on campus and the college allows cars, consider ditching it. Everything your teen needs can be found on campus. And many colleges offer student transportation at very inexpensive rates if they need to leave campus or there is always the option of purchasing a monthly bus pass. In emergency situations, one or more of their friends will usually have a car that they can use or will offer to drive them.
Use the student ID card for discounts–Most fast food restaurants and local eateries offer discounts to students with campus ID’s. Those small 10-15% discounts can add up.
Finish in 4 years or less–Encourage your teen to stay on track and finish in 4 years or less. Most financial aid packages are only good for 4 years. Staying an extra semester will tack on additional expense and is not necessary since most degree plans can be completed in 4 years.
Use family insurance coverage if allowed–Some colleges charge students for health plans. If you have a good family health plan, and the student insurance duplicates what is already covered, get any charges waived.
